September 8, 2013
New business owner’s and inventors that are venturing their way into the business world have a lot of challenges ahead of them. It is important to look into everything that may hinder or improve the success of the business, for example; researching the market structures, the economic stability during the time the new business will be opening, price strategizing, and barriers to entry. If taking all of these factors into account during the business planning and preparation phase, it may increase the success of the business.
Will Bury’s Invention
New inventor’s such as Will Bury may have obstacles ahead of him, especially if he does not understand what he needs to do to make his product marketable and entice new customers to want his product rather than CD’s or hard copy books. Will has developed and patented a proprietary technology device, a digitalizer, which speeds up the transformation of printed words of text materials to audio which also provides the option of reading it digitally (University of Phoenix Material, n.d.). Will has free access to the books he will be using that are no longer under copyright protection, but for the newer books, he is aware that he will need to pay $5 royalty fees for each book.
Currently, Will does everything himself from his garage at home. The digitizer is inexpensive to maintain, and he realizes that he will soon require some assistance to make better use of his time. Once he begins to sell more units of his products, as the owner of the business, he will need to focus his efforts on the elasticity of the product, pricing, and other important aspects of running a business as explained earlier.
Identifying what market structure the business falls in is important as well; whether it is a monopoly, monopolistic competition, oligopoly, or pure competition. It is assumed that Will’s business would be...